Ford lost $132,000 per EV sold in first Q 2024

[PreservedSwine]

Ford lost $1.3 billion in its electric vehicle department during the first quarter of 2024, which is about $132,000 per vehicle it sold.

Ouch. Lessens the feeling I paid too much for my vehicle

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[RickLightning]

It's a clickbait title. Ford isn't losing $132,000 per vehicle it sells, that's including all sorts of investments.

 

[PreservedSwine]

It's a clickbait title. Ford isn't losing $132,000 per vehicle it sells, that's including all sorts of investments.

Only EV Vehicle. Most companies include r&d in the bottom line. The gas division was able to cover the losses of the ev team. I suggest reading the entire article before calling it clickbait.
It’s simply the current state of affairs.
https://www.cnn.com/2024/04/24/business/ford-earnings-ev-losses/index.html

 

[shutterbug]

It's a clickbait title. Ford isn't losing $132,000 per vehicle it sells, that's including all sorts of investments.

It also does not include EVs sold through fleet sales.

 

[Steveel]

It's a clickbait title. Ford isn't losing $132,000 per vehicle it sells, that's including all sorts of investments.

Exactly, McDonald's builds a new restaurant 1 million dollar investment in land and construction first Big Mac costs $999,995 dollars. I am tired of buggy whip companies telling me I made a bad choice. It cost me $4.00 a week to charge my truck VS $100.00 in gas. I love the northwest!.

 

[RickLightning]

Only EV Vehicle. Most companies include r&d in the bottom line. The gas division was able to cover the losses of the ev team. I suggest reading the entire article before calling it clickbait.
It’s simply the current state of affairs.
https://www.cnn.com/2024/04/24/business/ford-earnings-ev-losses/index.html

It is clickbait BS.

The losses go far beyond the cost of building and selling those 10,000 cars, according to Ford. Instead the losses include hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.

And that means this is not the end of the losses in the unit - Ford said it expects Model e will have EBIT losses of $5 billion for the full year.

The company said it is its “intention” to be have EV pricing cover the actual costs of building each EV, rather than covering all the research and development costs, within the next 12 months. But a price war among EVs for about a year and a half has made even that measure of profitability very difficult said Ford CFO John Lawler. He said while Ford has removed about $5,000 in cost on each Mustang Mach-E, “revenue is dropping faster than we can take out the cost.”

 

[PreservedSwine]

I don’t understand why you feel it’s clickbait, it’s typical of virtually any industry to have the products sales cover the cost of development. But for the sake of my sanity, I’ll not try to convince you.

 

[Grease Lightning]

I don’t understand why you feel it’s clickbait, it’s typical of virtually any industry to have the products sales cover the cost of development. But for the sake of my sanity, I’ll not try to convince you.

As usual @RickLightning is correct. It is clickbait.

It is usual to capture revenue of the current product being sold to the total expense it is not common to quantity the value of R&D for the next generation of product on to the current product.

Look at how Apple does it as a diversified company….

Then their balance sheet is provided that analysts make up these wonderful clickbait comparisons.

 

[hturnerfamily]

but, regardless of what it might 'mean', or 'not mean'...

it really has NOTHING to do with anyone anywhere at anytime who have bought such an AMAZING MACHINE as this... I, personally, REALLY DON'T GIVE A FLIP about what Ford does or doesn't do or makes or doesn't make - My truck doesn't care, either... I love you Jim. Keep up the good work, no matter 'what' the nasayers will say.

 

[PreservedSwine]

As usual @RickLightning is correct. It is clickbait.

It is usual to capture revenue of the current product being sold to the total expense it is not common to quantity the value of R&D for the next generation of product on to the current product.

Look at how Apple does it as a diversified company….

Then their balance sheet is provided that analysts make up these wonderful clickbait comparisons.

That’s correct, but I still don’t get the “clickbait” response. Amazon lost money for quite a while while investing in r&d, logistics, and planning for the future. This post wasn’t meant as an attack on ford, but reading the replies, it’s becoming clear some may feel that way.

 

[Grease Lightning]

That’s correct, but I still don’t get the “clickbait” response. Amazon lost money for quite a while while investing in r&d, logistics, and planning for the future. This post wasn’t meant as an attack on ford, but reading the replies, it’s becoming clear some may feel that way.

The clickbait is the quantifying the loss on the vehicles sold to make EVs look bad. Ford is investing in the next generation which is a great thing. The narrative could have just the same been Ford invested nothing in R&D that quarter and had a net profit per EV, which they likely did either way.

If the analysts was only recapturing R&D cost from developing the Lightning, that was already written off the balance sheets, I would not consider that clickbait. Rather that would be prudent accounting to show if the original investment paid off.

To capture the cost of a battery plant or factory against selling 1 Lightning would have meant that 1 Lightning cost Ford 1.3 billion which we know is

 

[Schroederhc1]

At best, it's misleading. It doesn't cost Ford 175-200k to build 1 ev. Most of it is the ramp-up and future prep. The outfits that need to worry are the one trick, guys.

 

[mikedroof]

Does anyone know what it actually costs to build the lightning?

 

[shutterbug]

I don’t understand why you feel it’s clickbait, it’s typical of virtually any industry to have the products sales cover the cost of development. But for the sake of my sanity, I’ll not try to convince you.

It's not typical of ANY industry to have R&D that is expected to last multiple years, cover single year's production run. It would also be illegal. Investment is amortized over multiple years.

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